Like any business decision, going global comes with risks… but so does standing still! Here are some organizational factors to consider when exporting so you work well prepared, with the best possible chances of success.
1. Commitment - First, it is important to have the commitment of the management team to fund an international sales program and put in place the necessary staff to deliver increased production capacity.
2. Go-to-Market Strategy - It is also needed to decide upon a global sales structure and go-to-market strategy. Options include working via an agent, getting a distributor, via a license agreement, establishing a partnership, setting up an overseas office or through an acquisition.
3. Organizational Structure - Also, when looking to grow your business internationally, consider if the existing ownership structure is adequate or whether new external expertise is needed on-board. Companies should also consider bringing in external expertise as key players to strengthen their organizational capabilities.
4. Scale - Evaluate whether it is possible for economies of scale to be achieved in your business like reducing production costs as volume increases.
5. Marketing Costs - Also consider the cost of acquiring new customers and the cost of servicing customers in other markets. Your current business should get stronger and benefit from the expansion.
6. Investment - Companies should also consider whether they are prepared to bring in additional investors to financially strengthen the company. This decision could have implications for the ownership structure of your business, so it is important to consider organizational fit.
Once you’ve confirmed your commitment to going global with your business, look at where your company is at right now. This evaluation involves reviewing your existing Marketing Plan, adjusting your objectives, assessing the capability of your competitors and addressing the key challenges facing your business. Your current business should be healthy, and stay healthy during the export process, to benefit from the expansion.
GoGlobal from Puerto Rico!
Competitive, Exciting, and Sophisticated. Puerto Rico is an ideal investment destination where economic innovation, pioneering incentive programs, and global strategic positioning converge with a better way of life. Newcomers to the island can benefit from 4% corporate tax rates*, access to high-performing human capital, to top-notch facilities minutes away from the world's best beaches. Contact us to coordinate a free consult to learn more about the incentives.
Are you ready to start thinking about 2017? It is important to start working on your 2017 Marketing Plan and begin the year on the right foot. If you need help, one of our advisors can guide you with the marketing planning process. Let’s plan and go global!
DuartePino is a management advisory firm that combines in-depth customer knowledge with practical expertise in marketing to help clients create sustainable business growth. We can provide your organization with a fresh perspective, a proven process that invests in the outcome, and the tools for successful execution. From Fractional CMOs to business advisors, contact us to learn how our team can help with growth strategies for your organization.
DISCLAIMER: The content of this email has been prepared for information purposes only. It is not intended as and does not constitute, legal advice on local or federal tax matters. The evaluation of applications to receive the incentives and benefits here described are subject to the dispositions applicable under the law and regulations. * Act 20-2012 for Export Services.